10 August 2023, Mumbai: IndusInd Bank announced a reduction of 0.25% in the interest rates on fixed deposits (FDs) on Thursday, directly impacting depositors who will now receive lower interest on their deposits. This decision coincides with the Reserve Bank of India (RBI) maintaining an unchanged repo rate for the third consecutive time, attributing its decision to a decline in inflation.
Alignment with Unaltered RBI Repo Rate
Last year, RBI had raised the repo rate to 6.5% to combat escalating inflation and rising prices of essential commodities. Banks had followed suit by increasing interest rates on FDs.
Inflation Stabilization Impacts Interest Rate
With inflation now at manageable levels and RBI showing no inclination to further hike the repo rate, banks have begun to adjust the interest rates on FDs accordingly.
IndusInd Bank Adopts New Interest Structure
Effective from August 05, 2023, IndusInd Bank is offering interest rates ranging from 3.5% to 7.50% on FDs with maturities spanning 7 days to 10 years.Interest Rates on FDs Based on Maturity Periods:- 7 Days to 30 Days: 3.50%- 31 Days and 45 Days: 3.75%- 46 Days to 60 Days: 4.25%- 61 Days to 90 Days: 4.60%- 91 Days to 120 Days: 4.75%- 121 Days to 180 Days: 5.00%- 181 Days to 210 Days: 5.85%- 211 Days to 269 Days: 6.10%- 270 Days to 354 Days: 6.35%- 355 Days to 364 Days: 6.35%
IndusInd Bank’s decision to lower FD interest rates reflects the evolving landscape of interest rates amid RBI’s stance on stability and inflation control.